Vasomedical Announces Strong Revenue Growth for the Three Months Ended March 31, 2012

Advanced Heart Disease Patient Regains Lost Energy, Attends 50-Year Class Reunion After Receiving EECP® Therapy at Heart House in Washington Township

Vasomedical Successfully Exhibited at the 61st Annual Scientific Sessions of the American College of Cardiology

Vasomedical Announces Record Operating Income of $5.2 Million and 169% Increase in Revenue for the Seven Months Ended December 31, 2011

Florida Cardiologist Tells Angina Patients, “Don’t Give Up Hope: Non-Invasive EECP® Therapy Can Relieve Chest Pain when Stents and Bypasses Do Not”

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October 5, 2011

To our Stockholders:

An annual meeting of stockholders will be held at the Holiday Inn, 369 Old Country Road, Carle Place, NY 11514 on Monday, November 14, 2011, beginning at 10:00 A.M. EST.  At the meeting, you will be asked to vote on the following matters:

1. Election of two directors in Class I, two directors in Class II and three directors in Class III to hold office until the 2012, 2013 and 2014 Annual Meetings of Stockholders, respectively.
   
   
2. Ratification of the appointment of Rothstein, Kass & Company, P.C. as our independent registered public accountants for the year ending December 31, 2011.
   
3. Any other matters that properly come before the meeting.

The above matters are set forth in the proxy statement attached to this notice to which your attention is directed.

If you are a stockholder of record at the close of business on September 23, 2011, you are entitled to vote at the meeting or at any adjournment or postponement of the meeting. This notice and proxy statement is first being mailed to stockholders on or about October 5, 2011.

Important Notice Regarding the Availability of Proxy Materials for the Stockholder Meeting to be held on November 14, 2011.  The Proxy Statement and Annual Report on Form 10-K are available at www.proxyvote.com for registered holders and for beneficial owners.
 
By Order of the Board of Directors, 

/s/ Jun Ma                                           
JUN MA
Chief Executive Officer and President

Dated:  October 5, 2011
            Westbury, New York

Vasomedical, Inc. is engaged in designing, manufacturing, marketing and supporting EECP® external counterpulsation systems based on the Company's proprietary technology. EECP® therapy is a non-invasive, outpatient therapy for the treatment of cardiovascular diseases and is currently indicated for use in cases of angina, cardiogenic shock, acute myocardial infarction and congestive heart failure. The Company provides hospitals, clinics and private practices with EECP® equipment, treatment guidance and a staff training and maintenance program designed to provide optimal patient outcomes. The Company also provides other noninvasive medical equipment including Holter monitors and ambulatory blood pressure monitors.

Vaso Diagnostics d/b/a VasoHealthcare, a wholly owned subsidiary of Vasomedical, Inc., is a professional sales representation organization offering vendors of medical devices an alternative third party sales channel. Through an agreement with GE Healthcare, it is currently engaged as an exclusive sales representative for certain GE Healthcare products.

Additional information is available on the Company's website at www.vasomedical.com.

Except for historical information contained in this release, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this release, words such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “may”, “plans”, “potential” and “intends” and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions; the effect of the dramatic changes taking place in the healthcare environment; the impact of competitive procedures and products and their pricing; medical insurance reimbursement policies; unexpected manufacturing or supplier problems; unforeseen difficulties and delays in the conduct of clinical trials and other product development programs; the actions of regulatory authorities and third-party payers in the United States and overseas; uncertainties about the acceptance of a novel therapeutic modality by the medical community; continuation of the GEHC agreement; and the risk factors reported from time to time in the Company’s SEC reports. The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.